Durro-- Your subtlety and tact are excellent attributes, to be sure. I will be blunt. Our newbies reference to "reverse split rumours" is an obvious attempt at fear mongering.
Listen up, people. I'm going to give you the Baddest Day at the Blackest Rock scenario to show why a reverse split is not needed.
We have 23 million shares outstanding, but I'll cave in to the bashers and let's, for the sake of discussion only, say we were to dilute to the 50 million authorized figure.
Let's look at EnviroTec, Duchesne County, Utah only. Let's take the 14,400 bbls/day authorized, with no increase in capacity assumed despite a daily demand of 50,000 bbls/day. Let's ignore $10 to $30 per bbl rate and use my standby of $5 per bbl for 250 days per year. EIGHTEEN MILLION DOLLARS. Now, remember, Class II revenues covers the EnviroTec operating costs and the marginal costs associated with the Class V will be nominal.
That works out to 36 cents a share(remember it was 78 cents a share using the actual 23 million shares o/s). Now, tell me, does a company doing 36 cents a share from one operating subsidiary need to do a reverse split to get to $4 a share? Once LPS and AdHatters and later, oil/gas factored in, $4 a share will correspond to a P/E under 10.
The introduction of newbie bashers almost always should be viewed as a contrarian indicator. We should welcome them.
TG |
